Price of Petrol Expected to Decrease as Global Oil Prices Fall
From Our Correspondent.
There are increasing signs that Nigerians may soon pay less for Premium Motor Spirit (PMS), commonly known as petrol, due to a significant decline in the global price of Brent crude oil.
Reports indicate that the price of Brent, which serves as a global benchmark for crude prices, has dropped from $69.90 per barrel to $65 per barrel in recent days. This reduction is partly attributed to the announcement of sweeping new tariffs by U.S. President Donald Trump, which have influenced market trends.
Furthermore, the Organisation of Petroleum Exporting Countries (OPEC) and its allies have decided to increase oil output by 410,000 barrels per day starting in May 2025, a substantial rise compared to the previously planned increase of 135,000 barrels per day.
These developments are contributing to significant changes in the global oil market, ultimately impacting petroleum product prices. As a result of the decrease in crude oil prices, depot prices for major suppliers have also begun to decline. This shift may lead to lower retail prices for petrol, benefiting consumers across the country.
In a recent report, OPEC stated, “The eight OPEC+ countries, which had previously announced additional voluntary adjustments in April and November 2023—namely Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman—met virtually on April 3, 2025, to review global market conditions and outlook.
“In light of the continuing healthy market fundamentals and the positive market outlook, the decision made on December 5, 2024, and reaffirmed on March 3, 2025, to begin a gradual and flexible return of the 2.2 million barrels per day voluntary adjustments starting from April 1, 2025, will be implemented. The eight participating countries will adjust production by 411,000 barrels per day, equivalent to three monthly increments, beginning in May 2025.
“This includes the increase originally planned for May, in addition to two subsequent monthly increments. These gradual increases may be paused or reversed depending on evolving market conditions. This flexibility will allow the group to support oil market stability.
The eight OPEC+ countries also noted that this measure will provide an opportunity for participating countries to expedite their compensation. They reaffirmed their commitment to the voluntary production adjustments agreed at the 53rd Joint Ministerial Monitoring Committee (JMMC) meeting on April 3, 2024. They also confirmed their intention to fully compensate for any overproduced volumes since January 2024 and to submit updated front-loaded compensation plans to the OPEC Secretariat by April 15, 2025.”
